Factors Affecting Apple's Share Price

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Anthony Fisher
This research aims to explore what variables effect the common stock share price of Apple Inc (AAPL). The variables being used are closing price, volume, NASDAQ composite (IXIC), dividend amount, news, and total return. A multiple linear regression is run to determine what variables are significant. Fall

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Variables Effecting AAPL
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Ohio Wesleyan University

Introduction
There are many factors that determine a common stock’s share price. To some, it is pure speculation and confidence within the market, to others this a multitude of factors that determine a common stock’s share price that is traded on many exchanges around the world. According to Sunde and Sanderson, these variables that control a common stock’s share price are corporate earnings, management, lawsuits, mergers and takeovers, market liquidity and stability, availability of substitutes, government policy, macroeconomic fundamentals, investor sentiments, and analyst reports (Sunde and Sanderson 191). Although it is undetermined to a finite measurement what exactly will sway a common stock’s share price, these are possible variables that can and have created price movements within a common stock’s price. Apple Inc (AAPL) is no exception to this rule. Although it is a very large and powerful firm, it has had its fair share of price spikes and troughs. Recently, with the release of the newest iPhone model, Apple came up short on estimates by selling only 5million units of the iPhone 5 (Satariano). This bad news prompted many investors to sell their holdings; therefore the price of Apple plummeted. However, this cannot be the only reason for Apple creating a trough in its common stock share price, there must be more. The analysis that this study aims to explore is how Apple’s common stock share price is effected.

Since there are no rules or regulations as to how a common stock price should fluctuate based upon outlying variables, this research will focus on a set of variables that might have in the past and most recently effected Apple. Through researching this topic, it would verify or disprove if this set of variables has effected Apple’s common stock share price over the past five years. There are many theories available throughout the financial industry that can disprove this research, and make investors want to buy more shares of Apple. In other words, there will always be a plethora of investors looking to buy a firm’s common stock despite what the market shows because they feel they understand “what will happen next.” It is the fear of missing out on opportunity or the “next big thing,” that keeps Apple’s ownership number fairly high. This research is important because it will help future investors from buying at the wrong time, and give them more insight into when they should sell their holdings. Literary Review

Apple is one of the largest firm’s in the world and has swept many of its competitors’ market shares. We’ve all seen how Apple’s share price has grown over the years from its IPO to a triple digit quantity. During my internship at Merrill Lynch this summer, all I kept hearing about on Bloomberg and the hearsay of advisors in the office was how Apple’s common stock share price was going to break its historic record price. It always fascinated me as to why some companies were so popular yet their common stock share price did not reflect that popularity; Apple’s however does show this relationship. So for my research project, I chose to study how Apple’s share price is effected by a number of variables. Maybe there would be some answer as to how it boomed in such quantities so quickly over the years. The variables I used include volume traded, close of the NASDAQ composite, dividend amount, news releases, and the total return per share. But when I had to find a set of peer reviewed articles, it was difficult for me to find any studies that had been done specifically on Apple, or for that matter one specific...
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